NCC Bank surges 21% on record profit, boosted by govt securities income

National Credit and Commerce Bank PLC (NCC Bank) shares surged 21% today (28 April), driven by its announcement of a decade-high cash dividend alongside record profitability in 2025 since inception.

According to Dhaka Stock Exchange (DSE) data, NCC Bank's share surge added over Tk333 crore to its market capitalisation, with the stock rising beyond the usual 10% daily circuit limit, which is lifted after price-sensitive disclosures such as dividend announcements. 

Following its annual results, the bank recommended a 21% dividend for 2025 – 17% in cash and 4% in stock – compared to a 13% cash dividend in 2024, with the proposed cash payout marking the highest level since 2011.

After the announcement, the bank's share price rose Tk3 to close at Tk17.30, with the adjusted opening price at Tk14.30, according to DSE data. It was also among the most actively traded stocks of the day, recording transactions worth Tk83.73 crore.

Strong earnings and improved fundamentals

NCC Bank Chief Financial Officer Mohammed Mizanur Rahman told The Business Standard that the bank posted strong performance in core banking operations, including loan recovery and interest income, while reducing its non-performing loan (NPL) ratio to 4.12% from 7.50%.

He said improved financial indicators strengthened depositor confidence, supporting higher deposit growth. Rahman added that the bank posted a historic profit in 2025, prompting the board to approve a decade-high dividend, though it retained part of the earnings to strengthen long-term sustainability and future shareholder returns.

Profit growth and financial indicators

According to a price-sensitive information disclosure, NCC Bank's consolidated profit rose 8.67% in 2025 compared to the previous year. The growth was driven by higher interest income from government securities and lower current tax expenses linked to written-off loans.

Earnings per share (EPS) stood at Tk4.29, translating into a net profit of Tk476 crore, up from Tk438 crore in 2024. Consolidated net assets increased to Tk3,020.16 crore from Tk2,700.59 crore a year earlier.

Net operating cash flow per share rose to Tk14.15, supported by higher deposit inflows. The bank said the stock dividend was recommended to strengthen its capital base, support business expansion, and improve regulatory ratios and investment capacity.

The annual general meeting is scheduled for 24 June via digital platform, while the record date for shareholder eligibility has been set for 21 May.